USDX (USD Index)
After previous day weakness, U.S dollar index made a comeback today with a bounce and challenging 97.20 – 97.50 resistance area. The index looks solid and might close above the resistance area. Although it is bullish, U.S dollar index needs a close above 97.50 to break the two candles high.
On the medium-term, there is no change in outlook and another sell-off could put open the way to 96.30 – 96.50.
News to watch
For full outlook for this week, you can follow Forex Outlook For The Week 22 – 26 May 2017
Technical Analysis
EUR/USD
EUR/USD break above the top of its bullish channel, and it reversed today. The price has not closed yet, and it is above previous day low which is encouraging for the bull. As long as the low intact, there is no reason to short the pair yet. However, if the low broken, there is a possibility the correction could reach 1.1125.
The long-term trend of EUR/USD slowly turn to bullish and suggest trader to start looking each correction as buying opportunity.
Today critical level to watch:
Support: 1.1160, 1.1125, 1.1100, 1.1000, 1.0960
Resistance: 1.1220, 1.1240
GBP/USD
The bull has claimed 1.3000, but it only lasted for one day. After the close above 1.3000, GBP/USD has a hard time maintaining its position above the broken resistance and looks giving up the advantage. Nevertheless, if the pair starts moving down, it might find support near the bottom of the black bullish channel.
Today critical level to watch:
Support: 1.2934, 1.2900, 1.2855, 1.2800
Resistance: 1.3000, 1.3070
USD/JPY
USD/JPY is hovering higher above 110.50 and trying to erase its sharp losses from above 112.50 drops. There is possible bearish wedge pattern on the pair, but not confirmed yet. If the pair moves lower below the trendline, it should test 110.50 and lower toward 109.00.
Traders might need to wait and looking for the short position if the pair moves toward the top of the channel.
Today critical level to watch:
Support: 111.00, 110.50, 109.00
Resistance: 112.50, 113.00, 114.00
AUD/USD
The bull boldly brought the price back to 0.7500 major level where it rejected today. Though the price could not close above 0.7500 on Tuesday, it looks like the test will continue this week and trigger stop loss order above massive bear candle printed on 3rd March. If the bull could bring the price higher than 0.7550, it will trigger sharp buying as it also moves past above daily SMA 200.
Today critical level to watch:
Support: 0.7450, 0.7421, 0.7400, 0.7330, 0.7290
Resistance: 0.7500, 0.7550